Exercise $16-10$A $($Algo$)$ Using the internal rate of return to compare investment opportunities LO $16-3$

Velma and Keota $($V$\backslash$&K$)$ is a partnership that owns a small company. It is considering two alternative investment opportunities. The first investment opportunity will have a five$-$year useful life, will cost $\backslash (\backslash$$ $13,613\mathrm{.}78\backslash ),$ and will generate expected cash inflows of $\backslash (\backslash$$ $3,500\backslash )$ per year. The second investment is expected to have a useful life of five years, will cost $\backslash (\backslash$$ $14,743\mathrm{.}27\backslash ),$ and will generate expected cash inflows of $\backslash (\backslash$$ $3,500\backslash )$ per year. Assume that V$\backslash$&K has the funds available to accept only one of the opportunities. $($PV of $\backslash$$$1$ and PVA of $\backslash$$$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required

a$.$ Calculate the internal rate of return of each investment opportunity. $($Do not round intermediate calculations.$)$

b$.$ Based on the internal rates of return, which opportunity should V$\backslash$&K select?

Answer is complete but not entirely correct.